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tv   Counting the Cost 2017 Ep 40  Al Jazeera  October 7, 2017 12:32pm-1:01pm AST

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immunization programs to try to ensure that there isn't some sort of a cholera outbreak that might happen. u.s. forecasters say tropical storm nate has become a hurricane as it bears down on the gulf coast it's already battered central america with at least twenty five people killed in flooding and landslides across costa rica nicaragua honduras and el salvador a makeshift area where residents are laying flowers will be turned into a permanent memorial for fifty eight people shot dead by a gunman in las vegas on sunday police say they haven't yet established why sixty four year old stephen paddick carried out the attack took his president out of the logs as a major military operation is underway in syria's northwestern province of idlib he says the free syrian army have entered the areas and will receive the backing of turkish forces who haven't crossed the border yet now some iraqi politicians say draping the coffin of the late president jalal talabani with a kurdish flag was an insult to the central government tens of thousands of people
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paid their last respects to talabani on friday prime minister headed out of the didn't attend the event and several evocatively stations stopped their coverage those are the headlines on al-jazeera but do stay with us counting the cost is coming up next. i would use you. where ever you. go this is counting the cost of your weekly look at the world the business and finance this week. to economics u.s. president donald trump puts forward his plan to cut taxes for america's wealthy and
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big business. taxes one of the reasons getting catalonia against spain northeast region wants to go it alone will look at the economics. class carmageddon what's behind the collapse of australia's auto industry. it's a billionaire us president don't trump wants to reform the u.s. tax system but his plan looks more like tax cuts for america's wealthiest and some of the world's biggest corporations although it's yet to be fleshed out it is based on the idea that the cuts will pay for themselves with the economic growth they generate in the years to come yet in the history of us tax cuts that has never happened they call it supply side economics it's been done before and george h.w. bush famous famously called it voodoo economics it's likely to push up the deficit and opponents say it will deprive the government of money to spend on things like
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health care or social programs or the tax policy center calls it a giveaway for the rich those who earn more than four hundred thousand dollars a year get rates chopped for more than thirty nine percent to thirty five percent. and trump wants to slash tax for big business from thirty five percent currently to twenty percent wall street analysts say it could mean companies see a double digit boost in profits the tax code for business is in need of reform currently is full of loopholes the institute on taxation and economic policy says up to seventy three percent of fortune five hundred companies have at least one subsidiary in a tax haven but trump is likely to set very low tax rates to get companies to bring home offshore profits again analysts say not enough reform here and another windfall for companies like apple meanwhile tax disputes are brewing across the atlantic over the way big u.s. tech companies are taxed the european commission is trying to figure out how to
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call back revenue from apple this week it said it will take arlen to court to force it to recover fifteen billion dollars from the i phone maker arland and apple dispute the twenty sixth ruling by the e.u. it says the world's most valuable company received illegal state aid a tech giant amazon is also in the firing line it's been ordered to pay two hundred ninety four million dollars to luxemburg european commission says between two thousand and six and two thousand and fourteen amazon used the country as a haven to avoid european taxes for i would joining me from new york now is tax expert james henry james is a senior fellow with columbia university on sustainable development and a global justice fellow with yale university thanks for being with us so i want to ask you first of all just broadly speaking is this a tax plan that is going to benefit most americans or is it largely going to benefit the wealthy. well i think it's pretty clear that this plan was set out by
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goldman sachs and so you know that gary cohen who is former president of. goldman sachs is now trump's leading economics advisor the plan calls for a fairly radical change in the corporate income tax to what's called a territorial income tax. major companies like apple and google which have parked a lot of money in tax a vns offshore about two trillion dollars would be able to bring that back at a very low tax rate. and the rate that trump has been talking about is a fifteen to twenty percent. nominal rate but nobody pays that now most of these big companies to figure out ways to avoid that so this is a real sort of cash giveaway to the major m.
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and cs ordinary businesses are already on average paying less than. twelve percent in terms of the effective income tax so it's not going to help them what it is going to do though is set off a real international tax war between countries this is going to be the kind of we had are already a lot of tax competition among countries and i want to ask you as well how is this going to affect the situation with the european union it's bad tax policy i think the e.u. would would be upset because they would see the united states converting to a kind of territorial tax basically continuing this kind of global tax competition in the race to the bottom we've suffered from for quite a long time now this is just a complete reversal all the progress we've been made on getting a handle on base or roge and corporate tax dodging a number of analysts are saying as well that this is going to blow. a massive hole
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in the u.s. budget so if that is the case and you're giving out more than you're getting in who's going to pay for all is well it's going to be transferred to middle class and the poor in the form of bigger deficits i think you know we're still uncertain about what the exact numbers are because the congressional budget office hasn't scored this thing but it's at least three to five trillion dollars of increased. government spending over what the government is taking in increased deficit so we're seeing you know some republicans already expressing. concern about this yesterday senator corker was saying that he couldn't vote for a bill that blew up the deficit this way and the tax policy institute's projection in the u.s. is that the middle class that will end up paying more actually over a period of of ten years what do they base that on. well i think they're basing
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that on the fact that they're actually raising rates at the bottom. in the individual income tax side here and getting rid of some of them in the proposals that we've seen and these are all very sketchy back of the napkin type planning here. you know there are substantial reductions in the standard deductions that many middle class americans taken for for example state and local income taxes so. i think we're just beginning to understand how bad this bill is no question that on the corporate side it's a giveaway. on the individual side i think there's some debate about the actual impact that states does need a tax reform and tax simplification but this is a regressive reform that will basically transfer the burden of taxation to the middle class and the poor in the form of inflation longer term deficits that are increased and increased tax competition with with poorer countries all right james
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henry thanks very much for being with us thank you good to be with us from the still to come on counting the cost imagine a football team put together on social media where fans have a say on who play next we'll take a look at how it's changing the game. now some analysts have named it com again this week toyota and did fifty four years of production in australia and later this month another comic who will stop production and with that cars will no longer be made in australia as the entire industry collapses thousands of jobs will be gone as andrew thomas reports now from sydney the change is also point to a new economic driver. tirzah started making cars in australia back in one thousand nine hundred sixty three and in the fifty four years since more than three million total cars have rolled off its production lines in this country the closure of a factory in melbourne what is the direct loss of turn a half thousand jobs for
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a further three thousand people depended on that factory for their livelihood because they were in supply chain companies from the classic totem poles were brought back to the melbourne factory on tuesday for a ceremony to mark the closure of the factory last year ford closed its last car manufacturing plant in australia and in two weeks' time holden which the australian brand name for general motors cars works on as they're known elsewhere in the world it will close its last factory and that will mark the end of all car manufacturing in australia costs are simply too high compared to manufacturing costs elsewhere in asia but some say the closure of the car industry in australia isn't necessarily a bad thing it marks the transition of australia's economy toward civil service for insight. and it also suggests australian workers are getting jobs in higher tech industries elsewhere the auto industry is going through a big change every major car company says they'll have fully autonomous vehicles on
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the road before twenty twenty one ford's model t. revolutionized transport it was the world's first affordable car this week ford motors new boss jim hackett said it is steering investment away from traditional cars over the next five years he wants to put more money into electric and autonomous vehicles for british taxpayers could be hit with a nearly eighty million dollar bill after the collapse of monaco airlines the country's fifth biggest carrier it will have to pick up the tab for flying passengers home neighbor has more from gatwick airport in london. the mines is a major blow to britain's aviation industry the collapse has left one hundred ten thousand customers stranded overseas a further three hundred thousand people bookings have been cancelled more than two and a half thousand people are expected to lose their jobs at gibraltar airport passengers awaited news of replacement flights the british government's asked the civil
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aviation authority to charter thirty aircraft in what's been described as the largest peacetime of patrick nation of british citizens this is a hugely difficult day for passengers for staff we've been working with other tour operators other airlines over the last twenty four hours to try and make sure that is the earliest possible opportunity for people here to rebook their holidays the collapse has been blamed on an increase in aviation fuel costs and a slump in the value of the pound following the u.k.'s breaks of vote monex also faced tough competition from other low cost carriers especially on mediterranean routes the company says recent attacks targeting tourists in tunisia egypt and turkey have led to a slump in travel and numbers to key destinations contributing to losses of four hundred million dollars last year terrorism probably has been the major the major cause of monarchs failure because there are two particular markets i read see results and i'm on it was a really major player takeover talks with other airlines including norwegian air
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collapsed at the last minute leaving monaco unable to renew its air travel organizers license that protects customers from being stranded the broad monaco also has an engineering wing that could in theory continue to operate despite the collapse of the airline when it comes to its aviation assets though including lucrative a landing slots a busy airports like gatwick well they're expected now it's because between other airlines formed in one thousand nine hundred sixty eight monic was the country's fifth largest carrier a pioneer in low cost travel and the largest yet to go out of business is one of several european airlines including air berlin and alitalia to enter administration the fear is other airlines by also find their wings clipped in this increasingly turbulent market. now spain is desperately trying to hold the drive for independence in catalonia that threatens to be rail its economy millions of
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catalans hope an independent country would remain in the european union sitting between france and spain but would things really go as smoothly as they believe is largely from barcelona. the wisdom of the crowd is difficult to resist particularly when the atmosphere is as relaxed and happy as it has been in barcelona. the singalong here is to a protest tune dating to the franco dictatorship when catalan traditions were systematically repressed that every teenager knows the words speaks volumes about the historical enmity toward madrid so secession beckons can catalonia go it alone why not give it a try they say democracy is pure and beautiful they think spain is a proper democracy and. it's not when they are. believing that they have the power to shut us out and defeat us from government beyond their borders and keeping. our money and their markets there and. you know
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when they're spending the money that we are still part of the things not work for everyone. to leave spain camp here has all the momentum they think historically this is their time in the sun the idealized version of events is often presented to you here is over catalonia untrained free from the tyranny of madrid's an independent sovereign republic able to make its own way and said happily among the european community of nations will things things really be so simple. of course another european country voted for historic change recently to the u.k. to leave the european union but the essence of the argument was similar we want to be free from the control of others. it was convincing enough to win the arguments but now the u.k. is riven with disagreements and the e.u. is blocking its key demands. so when he was pro independence council and m.p.'s how
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they can possibly stay in the european union when spain would veto it you get an answer slightly less inspiring than the mood of the crowd what happens a couple only get stuck outside the european union as long as i was i would not like this prostitute happened. i could live better thirdly it's not only out of the photo to benefit to feel you're sure you didn't realize that for example you know the way. bridges the roads are part of the role of the union with additional ways to get exactly like your ex accompany you know the government it could be the like like like iceland you know that's what they say well we're not saying no we are not so we're told it like. we are saying goes you have economic of an average you know all the difficult comparable questions the u.k. never asked itself borders trade agreements the rights of cattle lands in spain and spaniards in catalonia nobody's bothering to ask about any of its but if they do jump off the cliff to independence they will have the european union to deal with
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it could be incredibly messy. catalonia is spain's most productive region and generates about twenty percent of the country's g.d.p. and roughly a third of its exports the region contributes twenty one percent of the country's total taxes which is reportedly more than it gets back from madrid catalonia also attracts a record amount of investment it has six never again biotech industry for example nearly a third of all foreign corporations and production facilities represented in spain are based in barcelona or its outskirts. joining us now from new castle in the u.k. is klaus the stairs and chief eurozone economist with macro economics thanks very much for being with us and now already as this political impasse rolls on there are there are it's already having economic implications the shares in the two main regional banks in catalonia have plummeted what implications is this going to have
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for savers there to begin with well i mean the implication for savers at the moment are not that high in the sense that just because the share price falls doesn't mean that. it's that it means anything but i think what you referred to is this this this notion that some banks have said that if catalonia declares and dependency they'll move their headquarters out of of the region because of the fact that catalonia will find itself being outside the e.u. and outside the euro zone and that certainly has implications potentially for savers to the extent that they have money in banks that don't move right so if you have if you have the positive in a bank in catalonia and catalonia suddenly decides unilaterally to secede from spain and you know that bank doesn't have time to move then yes it's those those the parts that will not and will no longer be euros that's and what they'll be i'm
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not so sure but they'll suddenly be worth less and is that continued uncertainty about what catalonia is place would be in in europe and so on that's having effects on spain's economy as well isn't it well it will because catalonia is a wealthy part of spain is a big part of the spanish economy sort of a locomotive in the spanish economy so you know the hit would certainly be on both sides but you know we're talking hypotheticals here i don't think catalonia is going to take that step but sure if they did unilaterally decide to leave with all the implications that might have in terms of. nation building they get their own currency they rebuild the you know of banking system to have their own central bank things like that which i mean i don't even know that that that that that they they have any clue about how to do that but if they did yes surely it would have implications for the spanish economy as well as that for certain the european economy even i want to come back to something that you suggested earlier which is that you don't believe that things would get to this point just explain why why you
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believe that and what would be the economic calculations in all of that well so my reading of the situation at the moment is that despite sort of what we could call the mainstream media the narrative is that catalonia has no friends right nobody supports catalonia there's no support in the in the international community for catalonia the spanish majority the people of spain is backing a hard line in my view from the government towards catalonia this is exactly why the spanish government is reacting the way it's reacting by basically saying look at a million and pens will happen and why they clamp down on the on the referendum and also in the e.u. the e.u. is hands tied the e.u. can only say what it said so far namely you know that there has to be dialogue no violence they try to deescalate the situation but. this idea that the e.u. is on the catalonia side here is wrong i mean flat out that there is no i mean
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catalonia is going to call if they if they seceded their first call will be term erkel mark on a suspect but you know they will find no friend there i think and how would you assess the spanish economy overall where where is spain's economy right now where the spanish economy is doing very well at the moment in part also because of strong activity in catalonia but on all not all not only that so this is a very unwell come from the point of view of the spanish economy which is also why i think that the the government is being so quote unquote heavy handed both in terms of its political rhetoric and in the way they. try to scrap with a referendum over the weekend because. nobody needs this in spain right now it's about economies doing all right and so this idea of a catalonia is it wants to leave because they think they're paying a little bit too much tax to madrid which is there's some stand this is my this is a narrative of the situation that i'm giving you there are other perspectives of this but i think this perspective is the one that many spaniards see and this is why you have this rather strong faceoff between the two regions between the madrid
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and catalonia at the moment all right class business and thanks for being with us thank you for having me out a digital security industry says there are two types of companies those that have been hacked and those that don't know they've been hacked this week web services provide a yahoo admitted that every single yahoo account in existence in twenty thirteen was hacked that's three billion accounts three times the number it disclosed last year when it reported the largest hack attack in internet history yahoo's internet assets have now been bought up by verizon and its new owner may face legal action over delays in reporting the security breach and finally imagine a football team put together on social media where the fans are the ones who influence who they play next that's what's happening in the u.k. and asylum that found out millions of fans can translate into millions in the bank
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. their first ever game was managed by one of english football's biggest names rio ferdinand and one huge huge plan to change your name but this isn't a premier league team this is rebel x.t. . the love of football is what unites this alliance with social media influences and bloggers. the grassroots movement mixes football with entertainment aside from life matches good says of behind the scenes fan punditry pranks and challenges they make up most of their online content or start a blow to the first video on you and i went really well from there and i continue to put on instagram twitter where all fans are following and keep up tonight. and some styles are going to see their idols one person at this event in london five one to me it's a day that the site men never look to see and each year old stars while the
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football teams regularly engage with their fans online this is also a chance to meet them face to face. stage. and pose for a selfie there are ten facial me to football team in the u k and for years following is growing by the day but in this interaction here with the fans offline and online but the football team stays behind their growing back. and as one of the world's leading football freestylers tells us a fantasy is key you can actually almost make you want to see us play next and they can actually have their own plane and the sooner you can engage with the audience that's what takes it to the next level oh right now how you doing a welcome to the final episode of the wembley cup. and that's exactly what spencer s.c. did playing two finals at wembley stadium which pulled in over twenty million online views and will underway on
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a week to week basis some matches played by. these teams average more than six hundred thousand views per video that's a big online following than some games receive in the lower leagues of english football's governing chest while most of their followers a millennial who keep coming back for more convincing traditional football fans might not be that easy they are the me like i'm. up for coming to a real go while social media football team say they are looking to replace traditional football they do believe their biggest appeal is relatability especially at a time when fans are becoming increasingly frustrated by how commercialized and non-personal professional football has become one time actually to get into like one of those you tube like that which on the life of the teams wasn't for me as it is a big market is always going to just be got to be the largest crowd for a football match with nonprofessionals and by the looks of it these amateur footballers have found a winning formula to kick the ball and their businesses in the right direction.
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that's our show for this week get in touch with us by tweeting me at times in secret and use the hash tag a j c t c when you do or drop us an e-mail counting the cost of al-jazeera dot net is our address as more for you online at c.n.n. dot com slash c.t.c. that will take you straight to our page which has individual reports links and entire episodes for you to catch up on. so that's it for this edition of counting the cost i'm has no secret from the whole team thanks for joining us the news on al-jazeera is next.
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optimism has faded. khans elected leaders are divided. tension grows as fears that a crackdown is imminent the targets the activists who fought for democracy divide and conquer. part five of the six part series filmed of the five years. on china's democracy experiment at this time on al-jazeera. the sunday sun wrote. this thing. raised on this roof is the name under which i recorded a regular regular music is really going to trip a lot. of very young is it may come from the maker but i feel that. the talks of
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are just the quality cuts off an organism or cricket music i think less of that's deeply relevant to this drug especially for the i think this is kind of all the right wing assault on our freedom to ask questions and generally all freedom of expression and people you know are being targeted like students teachers activists filmmakers writers base all of them been intimidated on a respite and people are on the streets and protest and it's just our doorstep so in whichever way i'd like to attempt to contribute something and it's. this is al-jazeera.


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